The cryptocurrency market witnessed Bitcoin breaking below crucial support at $105,500, entering a consolidation phase near $103,200. This movement follows unsuccessful attempts to overcome resistance at higher levels.

• BTC failed to maintain momentum above $106,500 and $105,500 thresholds

• Current trading occurs below both the $106,500 mark and 100-hour moving average

• A descending trendline with resistance at $106,600 appears on BTC/USD charts

• Potential recovery could initiate upon surpassing $105,500 resistance

Examining the Price Movement

After facing rejection near $110,500, Bitcoin began descending through multiple support zones. The downward trajectory saw BTC testing levels not visited since early June, with temporary stabilization occurring near $103,000.

Market participants observed the cryptocurrency dipping below several psychologically important levels, including $104,200. The current consolidation occurs below the 23.6% Fibonacci retracement level from recent highs to lows.

Technical indicators currently paint a cautious picture, with BTC trading beneath both the $105,500 level and its 100-hour moving average. The formation of a bearish trendline adds further resistance near $106,600 on hourly charts.

Potential upward movements face initial barriers at $104,200, followed by more significant resistance clusters at $105,500 and $106,600. The latter coincides with the 50% retracement level from recent price swings.

Potential Market Scenarios

Should Bitcoin successfully overcome the $106,600 resistance, market observers anticipate possible tests of higher levels. Such a breakout could potentially lead to examinations of $108,000 and beyond.

Conversely, failure to reclaim higher ground might prompt additional downward pressure. Immediate support resides near $103,000, with stronger foundations at $102,350 and $101,500. Market participants remain watchful of the psychological $100,000 level.

Technical Observations:

• MACD indicator shows increasing bearish momentum

• RSI readings currently sit below neutral territory

• Critical support zones: $103,000 and $102,350

• Key resistance areas: $104,200 and $105,500